Fashion chain Superdry has slashed its sales outlook and revealed plans to cut costs by more than £35 million after seeing dampened consumer spending.
Issues “outside the company’s control”, including cost-of-living pressures and poor weather weakening demand for spring and summer collections, dragged on sales in February and March, the retailer said.
The company told shareholders it has decided to withdraw its previous profit guidance that it would broadly breakeven for the 2023 financial year.
It also revealed plans to make cost savings of over £35 million, which would partly be achieved by “estate optimisation”, suggesting shop closures, and reducing its clothing ranges.
Julian Dunkerton, Superdry’s founder and chief executive, said: “The Superdry brand continues to evolve but there is no doubt that the market conditions we face are challenging, compounded by the issues we have previously disclosed and are working to address in wholesale.
“As a result, while we continue to deliver like-for-like growth in retail sales, we need to ensure our business is in the right shape to navigate these difficult times, which is why we are looking hard at our cost base.
“My belief in the Superdry brand is stronger than ever which is why I’m prepared to provide material support to any equity raise undertaken.
“I am confident that we have the right plan and, working together as a team, the business will emerge from the current turbulence stronger than ever.”
